Graphisoft (Frankfurt Neuer Markt: GPH)
today announced that it expects fourth quarter 1998 and FY 1998 financial
results to exceed analyst expectations. Revenue in 1999 will be
approximately DM 44M representing between 14% and 15% growth over 1997.
Operating income will be more than DM 10M, slightly exceeding the
company's exceptionally high income figure of 1997. Final figures will be
released on March 11, 1999.

"1998 was a year of huge transition and the most successful year in our history," states Graphisoft President and CEO Gábor Bojár. "We launched
ARCHICAD 6.o, moved to our new headquarters, opened three additional
subsidiary offices and entered the Frankfurt Stock Exchange. At the same
time, we are very pleased that we achieved our 15th consecutive year of
double-digit growth and profits and surpassed consensus analyst
expectations."

Revenue growth was lead by Europe where sales increased approximately
38%. Growth in Germany was almost 50%, and exceptional growth was also
achieved in the UK (almost 60%), France (almost 60%) and Italy (almost
70%). North American sales also grew approximately 35%, more than three
times the overall growth of the North American AEC market according to
independent sources. While growth in Asia/Pacific was negative, ARCHICAD
made significant market share gains against local Japanese competitors in
a very difficult year for the entire region.

Meanwhile, ARCHICAD continued to win accolades in 1998 with the Software
Publishers Association's Codie Award, CADENCE magazine's "Top Gun" and
Editors' Choice Awards, and as the top medal winner for the third
consecutive year at the Boston CAD Shootout.

"Underlying our strong 1998 revenue gains is growth in ARCHICAD unit
sales," reports Graphisoft Vice President of Marketing and Sales Gábor
Kazar. "Graphisoft sold almost 14,000 new units of ARCHICAD in 1998 and
more than 15,000 upgrade units. Our user base is not only vibrant, but
growing rapidly."

Graphisoft also made important inroads in 1998 to expand its business
beyond ARCHICAD sales with the first implementation of its object-based
retailing solution "SalesCAD" at Europe's bauMax-x stores. SalesCAD will
continue to develop in 1999 as will "ARCHICAD for building management," a
new initiative to broaden Graphisoft's Virtual Building concept to
building management. In addition to developing new markets around
ARCHICAD technology in 1998, Graphisoft released the first Software
Development Kit (SDK) allowing third party developers to create programs
that will work inside ARCHICAD 6.o and add specific functions such as
shadow calculation, wood framing, piping and molding.

Graphisoft opened 1999 with the acquisition of the German AEC software
Bauplan from Wiechers & Partner GmbH, expanding its German client base by
more than 700 architectural offices and annual sales potential in Germany
by at least 1 Million EURO. Graphisoft anticipates further acquisitions
in 1999 to strengthen its position in leading AEC markets, broaden its
market within the building industry and consolidate leading CAD
technology around its object-based "Virtual Building" model.

Graphisoft is a leading provider of computer-aided design (CAD) software
solutions for the architectural profession and the building industry.
Founded in 1982 in Budapest, Hungary, Graphisoft is ranked today among
the largest AEC CAD software developers in the world with offices in
Budapest, Munich, San Francisco, Tokyo, Hong Kong, London and Madrid.
Graphisoft's flagship product, ARCHICAD, is used by more than 55,000
architects worldwide and distributed in 25 languages and 80 countries.
Shares of Graphisoft are traded on the Frankfurt Stock Exchange Neuer
Markt under the symbol GPH. More information about Graphisoft is
available at www.graphisoft.com.

This press release contains statements that are forward looking. These
statements are based on current expectations that are subject to risks
and uncertainties. Actual results may vary because of factors such as
technological shifts; customer demand; competitive products and pricing;
shipping schedules; litigation; and other issues.

Graphisoft and ARCHICAD are registered trademarks of Graphisoft R&D Rt.
All other trademarks mentioned are the properties of their respective
owners.